Category: Application of Economics

In making which of the following statements is an economist acting more like a scientist ?

A. A reduction in unemployment benefits will reduce the unemployment benefits will reduce the unemployment rate.
B. The rate of inflation should be reduced because it robs the elderly of their savings.
C. The unemployment rate should be reduced because unemployment robs individuals of their dignity.
D. The state should increase subsidies to universities because the future of our country depends on education.

Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists ?

A. really don’t disagree at all It just appears that they disagree.
B. disagree because they have different values.
C. none of these answers.
D. disagree because they have different scientific judgments.

Economic growth is depicted by ?

A. a shift in the production possibilities frontier outward.
B. a movement from inside the curve toward the curve.
C. a shift in the production possibilities frontier inward
D. a movement along a production possibilities frontier toward capital goods.